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SeCtion tWo Change approaches & management tools
PERFORMANCE APPRAISAL Description
Performance Appraisal systems involve the direct evaluation of performance (individual or group) by others (manager or peer). Their main use is to link organisational goal-setting processes with systems of reward in terms of pay and career progression. While this may act as a powerful incentive for improving individual and team performance, traditional appraisal systems often show poor effects. As a result, newer forms of appraisal, which seek to enhance employee involvement and better balance employee and organisational need, are gaining ground.
Table: Comparison of traditional and high involvement appraisals
Performance appraisal
elements traditional appraisal High-involvement appraisal
Purpose Organisational, legal, fragmented Developmental, integrative
Appraiser Supervisor, manager Appraise, co-workers, others
Role of appraise Passive recipient Active participant
Measurement Subjective, concerns over validity Objective and subjective
Timing Periodic, fixed, administratively driven Dynamic, timely, employee-driven
Use
Appraisals are conducted for a variety of purposes including skills development and decisions over pay and promotion. Given multiple purposes, appraisal systems are best tailored to balance multiple organisational and employee needs, through direct involvement of appraise, co-workers and managers in assessing the purposes of any appraisal, and adjusting process to fit the purpose, whether pay, development or promotion.
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